9 Lessons The Rich Teach Their Kids That The Poor Don’t
Here are 9 valuable lessons The Rich Teach Their Kids That The Poor Don’t. These lessons will help you teach your child and guide your upcoming business goals.
1. Spend Only On Necessary Expenses Correlation is NOT causation.
Just because the rich splurges on luxury purchases, does NOT mean they got rich doing that. You can do that AFTER you are rich. But during your come-up, remove all unnecessary expenses.
Here are some ways to reduce your unnecessary expenses: – Pay physical cash (Research has shown paying in cash is “painful”, making you spend only on what you need.) – Invest all your excess cash. (out of sight, out of mind) Excess cash makes you wanna spend it.
2. Take Responsibility “People who blame are lame.”
– Robert Kiyosaki Poor people blame their parents, children, spouse, boss, politician, economy… basically everyone & everything except for themselves. Rich people take ownership of their own finances – both good & bad.
3. Think Big
The poor think in dollars & cents. The middle class thinks in hundreds & thousands. The rich think in millions & billions. To get rich, stop entertaining small numbers & get comfortable with large numbers when it comes to money, business, deals & investments.
4. Desire To Improve
“The more you learn, the more you earn.” – Warren Buffett.
There is nothing embarrassing about being a complete beginner about wealth. But you need to have the ambition to want to improve. Without this innate ambition, you will never get wealthy.
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Telemarketers made an absolute killing in the late 1980s & early 1990s. But Internet marketers have taken over all of their market share now. Taxi companies enjoyed (essentially) a monopoly for decades. They refused to upgrade & got whooped by Uber, Lyft, Grab & more.
The only constant is change. Whether it is with business, investments, or even just your personal skills & knowledge, adapt to the times. People who refuse to upgrade & adapt will be left behind – and no boss or politician is going to save you.
To get rich, adapt!
6. Do Not Exchange Time For Money
Whether you are exchanging time for money in a 9-5 or self-employment, you will always have limited income. The wealthiest people in the world don’t exchange time for money. Detach your time from making of money – via business & investments.
Even top athletes sign sponsorship & advert deals to lower their reliance on their physical labor for money. Eg Michael Jordan of NBA makes more money now through his passive investments & business royalties than he used to make as the #1 NBA player.
7. Start Early
If you have not started your own business & investments, start now. You are the youngest you will ever be again today. Wealth takes time to compound. Also, you will make mistakes along the way. Starting early ensures you get rich while still “young”.
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8. Start Your Own Business
Starting a business is not meant for the faint-hearted or for everyone. But if you actually are serious about getting rich, do it. Forbes billionaires’ list has been topped by entrepreneurs every year since its inception.
9. Invest For Cash Flow Too
“Cash flow is king.” – Grant Cardone
You can’t go all speculative & risky with your investments. One bad mistake & you will be wiped out. You also want to have a decent amount of assets which produces passive income or cash flow.
Cash flow assets eg:
– Cash flow positive rental property
– Dividend paying funds
– Automated profitable businesses
Cash flow from these “safe” investments will pay for your lifestyle expenses & take care of you. Any excess cash can be used for speculative or risky investments.
By Alvin The Investor